6-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K
Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934

For the month of September 2016

Commission File Number: 001-13138

Pointer Telocation Ltd.
(Translation of registrant's name into English)

14 Hamelacha Street, Rosh Ha'ayin, Israel 4809133
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒     Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____

Pointer Telocation Ltd.

Pointer Telocation Ltd. is publishing its unaudited interim consolidated financial statements as well as its operating and financial review and prospects, as of June 30, 2016.

This Form 6-K is being incorporated by reference into all effective registration statements filed by the Registrant under the Securities Act of 1933.

Exhibits

Exhibit 1	Pointer Telocation’s consolidated interim financial statements as of June 30, 2016.
Exhibit 2	Pointer Telocation’s operating and financial review and prospects as of June 30, 2016.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: September 20, 2016 POINTER TELOCATION LTD.


By: /s/ Yossi Ben Shalom
——————————————
Yossi Ben Shalom
Chairman of the Board of Directors

EX-99.1

Exhibit 1

POINTER TELOCATION LTD. AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2016

IN U.S. DOLLARS

UNAUDITED

INDEX

	Page
Interim Condensed Consolidated Balance Sheets	2 - 3
Interim Condensed Consolidated Statements of Income and Comprehensive income	4 - 5
Interim Statements of Changes in Shareholders' Equity	6 - 7
Interim Condensed Consolidated Statements of Cash Flows	8 – 10
Notes to Interim Condensed Consolidated Financial Statements	11 - 19

- - - - - - - - - - - -

POINTER TELOCATION LTD. AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

	June 30,		December 31,
	2016		2015
	Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	7,745	$	7,252
Trade receivables (net of allowance for doubtful accounts of $1,044 and $1,347 at June 30, 2016 and December 31, 2015, respectively)		11,627		9,494
Other accounts receivable and prepaid expenses		2,360		1,596
Inventories		4,416		4,697
Current assets of discontinued operation		-		11,616
Total current assets		26,148		34,655
LONG-TERM ASSETS:
Long term loans to related parties		820		-
Long-term accounts receivable		499		490
Severance pay fund		3,000		2,740
Property and equipment, net		3,614		3,278
Other intangible assets, net		398		443
Goodwill		32,208		31,388
Deferred tax asset		2,202		3,086
Long Term assets of discontinued operation		-		27,358
Total long-term assets		42,741		68,783
Total assets	$	68,889	$	103,438

The accompanying notes are an integral part of the interim consolidated financial statements.

2 

POINTER TELOCATION LTD. AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands (except share and per share data)

	June 30,			December 31,
	2016			2015
	Unaudited
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term bank credit and current maturities of long-term loans	$	4,572		$	4,820
Trade payables		5,871			4,651
Deferred revenues and customer advances		735			671
Other accounts payable and accrued expenses		6,160			5,168
Current liabilities of discontinued operation		-			15,142
Total current liabilities		17,338			30,452
LONG-TERM LIABILITIES:
Long-term loans from banks		6,340			8,385
Deferred revenues and other long-term liabilities		331			258
Accrued severance pay		3,429			3,345
Long term liabilities of discontinued operation		-			5,963
Total long term liabilities		10,100			17,951
EQUITY:
Pointer Telocation Ltd's shareholders' equity:
Share capital
Ordinary shares of NIS 3 par value -
Authorized:16,000,000 unaudited shares at June 30, 2016 and December 31, 2015; Issued and outstanding: 7,799,244 and 7,784,644 shares at June 30, 2016 and December 31, 2015, respectively		5,775			5,770
Additional paid-in capital		128,183			128,410
Accumulated other comprehensive income		(5,351	)		(6,254	)
Accumulated deficit		(87,316	)		(71,822	)
Total Pointer Telocation Ltd.'s shareholders' equity		41,291			56,104
Non-controlling interest		160			(1,069	)
Total equity		41,451			55,035
Total liabilities and equity	$	68,889		$	103,438

The accompanying notes are an integral part of the interim consolidated financial statements.

3 

POINTER TELOCATION LTD. AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

U.S. dollars in thousands

	Six months ended June 30,						Three months ended June 30,						Year ended December 31,
	2016			2015			2016			2015			2015
	Unaudited						Unaudited
Revenues:
Products		11,555			11,535			6,048			5,753			22,266
Services		19,485			19,368			10,166			9,738			38,301
Total revenues		31,040			30,903			16,214			15,491			60,567
Cost of revenues:
Products		7,178			6,906			3,782			3,583			13,435
Services		8,774			9,372			4,702			4,673			17,879
Total cost of revenues		15,952			16,278			8,484			8,256			31,314
Gross profit		15,088			14,625			7,730			7,235			29,253
Operating expenses:
Research and development		1,824			1,718			919			824			3,409
Selling and marketing		5,615			5,079			2,968			2,640			10,468
General and administrative		4,227			4,391			2,093			2,220			9,278
Amortization of intangible assets		195			292			105			140			538
Impairment of intangible and tangible assets		-			-			-			-			917
Total operating expenses		11,861			11,480			6,085			5,824			24,610
Operating income		3,227			3,145			1,645			1,411			4,643
Financial expenses (income),  net		243			(221	)		323			147			63
Other expenses (income), net		(4	)		13			2			13			10
Income before taxes on income		2,988			3,353			1,320			1,251			4,570
Taxes on income		854			645			276			309			1,307
Net income from continuing operations		2,134			2,708			1,044			942			3,263
Net income (loss) from discontinued operations, net		154			57			(168	)		(41	)		535
Net income		2,288			2,765			876			901			3,798

The accompanying notes are an integral part of the interim consolidated financial statements.

4 

POINTER TELOCATION LTD. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

U.S. dollars in thousands (except share and per share data)

	Six months ended June 30,					Three months ended June 30,						Year ended December 31,
	2016		2015			2016			2015			2015
	Unaudited
Profit  (loss) from continuing operations attributable to:
Pointer Telocation Ltd's shareholders		2,123		2,765			1,037			1,004			3,338
Non-controlling interests		11		(57	)		7			(62	)		(75	)
		2,134		2,708			1,044			942			3,263
Profit  (loss) from discontinued operations attributable to:
Pointer Telocation Ltd's shareholders		120		103			(175	)		(1	)		607
Non-controlling interests		34		(46	)		7			(40	)		(72	)
		154		57			(168	)		(41	)		535
Earnings per share from continuing operations attributable to Pointer Telocation Ltd's shareholders:
Basic net earnings per share	$	0.27	$	0.36		$	0.13		$	0.13		$	0.43
Diluted net earnings per share	$	0.27	$	0.35		$	0.13		$	0.13		$	0.42
Weighted average -Basic number of shares		7,787,009		7,694,976			7,789,365			7,701,317			7,725,246
Weighted average – fully diluted number of shares		7,924,421		7,961,010			7,934,321			7,957,222			7,938,489

The accompanying notes are an integral part of the interim consolidated financial statements.

5 

POINTER TELOCATION LTD. AND SUBSIDIARIES

INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

U.S. dollars in thousands (except share data)

			Pointer Telocation Ltd.'s Shareholders
	Number of shares		Share capital		Additional paid-in capital			Accumulated Other comprehensive income			Accumulated Deficit			Non- controlling interest				Total equity
Balance as of January 1, 2015		7,688,564	$	5,705	$	129,618		$	(2,909	)	$	(75,767	)	$	(2,851	)	$	53,796
Issuance of shares in respect of Stock-based compensation		14,999		3		11			-			-			-			14
Stock-based compensation expenses		-		-		309			-			-			-			309
Acquisition of non-controlling interests		81,081		62		(1,528	)		-			-			2,007			541
Other comprehensive income		-		-		-			(3,345	)		-			(78	)		(3,423	)
Net loss attributable to Non -controlling interest		-		-		-			-			-			(147	)		(147	)
Net income attributable to Pointer shareholders		-		-		-			-			3,945			-			3,945
Balance as of December 31, 2015		7,784,644	$	5,770	$	128,410		$	(6,254	)	$	(71,822	)	$	(1,069	)	$	55,035
Issuance of shares in respect of Stock-based compensation		14,600		5		2			-			-			-			7
Stock-based compensation expenses		-		-		94			-			-			-			94
Other comprehensive income		-		-		-			793			-			811			1,604
Transaction with shareholders		-		-		(323	)		323			-			-			-
Distribution of a subsidiary as a dividend in kind		-		-		-			(213	)		(17,737	)		373			(17,577	)
Net income attributable to Non -controlling interest		-		-		-			-			-			45			45
Net income attributable to Pointer Telocation Ltd's shareholders		-		-		-			-			2,243			-			2,243
Balance as of June 30, 2016 (unaudited)		7,799,244	$	5,775	$	128,183		$	(5,351	)	$	(87,316	)	$	160		$	41,451

Accumulated other comprehensive income for six month that ended on June 30, 2016:

Accumulated foreign currency translation differences, net		(5,351	)
Accumulated other comprehensive income	$	(5,351	)

The accompanying notes are an integral part of the interim consolidated financial statements.

6 

POINTER TELOCATION LTD. AND SUBSIDIARIES

INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

U.S. dollars in thousands (except share data)

			Pointer Telocation Ltd.'s Shareholders
	Number of		Share		Additional paid-in		Accumulated other comprehensive			Accumulated			Non- controlling			Total
	shares		capital		capital		income			deficit			interest			equity
Balance as of January 1, 2015		7,688,564	$	5,705	$	129,618	$	(2,909	)	$	(75,767	)	$	(2,851	)	$	53,796
Issuance of share capital		12,875		2		5		-			-			-			7
Stock-based compensation expenses		-		-		174		-			-			-			174
Other comprehensive income		-		-		-		(52	)		-			(62	)		(114	)
Net income attributable to Non -controlling interest		-		-		-		-			-			(101	)		(101	)
Net income attributable to Pointer shareholders		-		-		-		-			2,866			-			2,866
Balance as of June 30, 2015 (unaudited)		7,701,439	$	5,707	$	129,797	$	(2,961	)	$	(72,901	)	$	(3,014	)	$	56,628

Accumulated other comprehensive income for six month that ended on June 30, 2015:

Accumulated foreign currency translation differences, net		(2,961	)
Accumulated other comprehensive income	$	(2,961	)

The accompanying notes are an integral part of the interim consolidated financial statements.

7 

POINTER TELOCATION LTD. AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

	Six months ended June 30,						Three months ended June 30,						Year ended December 31,
	2016			2015			2016			2015			2015
	Unaudited						Unaudited
Cash flows from operating activities:
Net income	$	2,288		$	2,765		$	876		$	901		$	3,798
Adjustments required to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		1,775			1,985			877			979			3,959
Impairment of tangible and intangible assets		-			-			-			-			917
Accrued interest and exchange rate changes of debenture and long-term loans		74			10			290			376			(888	)
Accrued severance pay, net		121			(38	)		74			(6	)		17
Gain from sale of property and equipment, net		(179	)		(72	)		(53	)		(38	)		(143	)
Stock-based compensation		94			174			36			83			309
Decrease  in restricted cash		-			62			-			-			62
Decrease in trade receivables, net		(4,284	)		(513	)		(585	)		(10	)		(236	)
Increase in other accounts receivable and prepaid expenses		(906	)		(1,060	)		(249	)		(1,106	)		(469	)
Decrease (increase) in inventories		443			(180	)		207			(171	)		658
Decrease Deferred income taxes		1,038			387			248			197			1,080
Decrease (increase) in long-term accounts receivable		(9	)		14			126			12			(91	)
Increase in trade payables		2,042			900			296			837			1,277
Increase (decrease) in other accounts payable and accrued expenses		2,460			(291	)		1,293			(701	)		(1,448	)
Net cash provided by operating activities		4,957			4,143			3,436			1,353			8,802
Cash flows from investing activities:
Purchase of property and equipment		(2,861	)		(1,354	)		(1,284	)		(769	)		(3,616	)
Purchase of other intangible assets		(115	)		-			(115	)		-			-
Proceeds from sale of property and equipment		594			648			118			337			1,266
Net cash used in investing activities		(2,382	)		(706	)		(1,281	)		(432	)		(2,350	)

The accompanying notes are an integral part of the interim consolidated financial statements.

8 

POINTER TELOCATION LTD. AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

	Six months ended June 30,						Three months ended June 30,						Year ended December 31,
	2016			2015			2016			2015			2015
	Unaudited						Unaudited
Cash flows from financing activities:
Receipt of long-term loans from banks		95			15,103			-			4,546			14,934
Repayment of long-term loans from banks		(2,250	)		(17,729	)		(1,123	)		(6,335	)		(19,503	)
Repayment of long-term loans from shareholders		-			(32	)		-			(19	)		-
Proceeds from issuance of shares and exercise of options, net of issuance costs		-			6			-			-			15
Short-term bank credit, net		128			(486	)		83			(18	)		(915	)
Distribution as a dividend in kind of previously consolidated subsidiary (a)		(1,870	)		-			(1,870	)		-			-
Net cash used in financing activities		(3,897	)		(3,138	)		(2,910	)		(1,826	)		(5,469	)
Effect of exchange rate on cash and cash equivalents		(280	)		(409	)		(155	)		1,098			(193	)
Increase (decrease) in cash and cash equivalents		(1,602	)		(110	)		(910	)		193			790
Cash and cash equivalents at the beginning of the period	$	9,347			8,557		$	8,655			8,254			8,557
Cash and cash equivalents at the end of the period-continuing operations		7,252			6,834			7,252			6,834			7,252
Cash and cash equivalents at the end of the period-discontinued operations		-			1,613			-			1,613			2,095
Total Cash and cash equivalents at the end of the period	$	7,745		$	8,447		$	7,745		$	8,447		$	9,347

(a)	Distribution as a dividend in kind of previously consolidated subsidiary:
	The subsidiaries' assets and liabilities at date of distribution:
	Working capital (excluding cash and cash equivalents)		(5,443	)		-		(5,443	)		-		-
	Property and equipment		7,048			-		7,048			-		-
	Goodwill and other intangible assets		15,883			-		15,883			-		-
	Other long term liabilities		(1,781	)		-		(1,781	)		-		-
	Non-controlling interest		373			-		373			-		-
	Accumulated other comprehensive loss		(213	)		-		(213	)		-		-
	Dividend in kind		(17,737	)		-		(17,737	)		-		-
		$	(1,870	)	$	-	$	(1,870	)	$	-	$	-

The accompanying notes are an integral part of the interim consolidated financial statements.

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POINTER TELOCATION LTD. AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

(b)	Non-cash activity:
	Purchase  of property and equipment	$	107	$	264	$	107	$	208	$	378
(c)	Supplemental disclosure of cash flow activity:
	Cash paid during the year for:
	Interest	$	270	$	414	$	132	$	220	$	640
	Income taxes	$	27	$	18	$	22	$	6	$	27

The accompanying notes are an integral part of the interim consolidated financial statements.

10 

POINTER TELOCATION LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

NOTE 1:- GENERAL

a. On June 8, 2016 Pointer Telocation Ltd. ("the Company") spun off its Israeli subsidiary, Shagrir Group Vehicle Services Ltd. (“Shagrir”), through which the Company carried out its road side assistance (RSA), activities and listed Shagrir's shares on the Tel Aviv Stock Exchange. The results of Shagrir until the spin-off are included in the Company's results and presented as discontinued operations (see note 9).

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES

a. Unaudited interim financial statements:

The accompanying consolidated balance sheet as of June 30, 2016, consolidated statements of income and comprehensive income for the three and six months ended June 30, 2016 and 2015 and the consolidated statements of cash flows for the three and six months ended June 30, 2016 and 2015 are unaudited. These unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information. In the preparation of the consolidated financial statements, it applied the significant accounting policies, on a consistent basis to the annual financial statements of the Company as of 31 December 2015.

In the opinion of management, the unaudited interim condensed consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair presentation of the Company's consolidated financial position as of June 30, 2016, the Company's consolidated cash flows and financial performance for the three and six months ended June 30, 2016 and 2015.

The balance sheet at December 31, 2015 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete set of financial statements.

These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended December 31, 2015 included in the Company's Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission ("SEC") on March 31, 2016.

Results for the three and six months ended June 30, 2016 are not necessarily indicative of results that may be expected for the year ending December 31, 2016.

b. Use of estimates:

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and accompanying notes. The company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

c. Principles of consolidation:

Our consolidated financial statements include the accounts of the Company and its' wholly and majority owned subsidiaries, referred to herein as the group.

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POINTER TELOCATION LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.)

Intercompany transactions and balances including profits from intercompany sales not yet realized outside the Company, have been eliminated upon consolidation.

d. Accounting Standards still not effective

In May 2014, the Financial Accounting Standards Board (FASB) issued a new standard to achieve a consistent application of revenue recognition within the U.S., resulting in a single revenue model to be applied by reporting companies under U.S. generally accepted accounting principles. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. On July 9, 2015, the FASB agreed to delay the effective date by one year. In accordance with the agreed upon delay, the new standard is effective for us beginning in the first quarter of 2018. Early adoption is not permitted. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. We have not yet selected a transition method nor have we determined the impact of the new standard on our consolidated condensed financial statements.

In March 2016, the FASB issued an ASU amending the accounting for stock-based compensation and requiring excess tax benefits and deficiencies to be recognized as a component of income tax expense rather than equity. This guidance also requires excess tax benefits to be presented as an operating activity on the statement of cash flows and allows an entity to make an accounting policy election to either estimate expected forfeitures or to account for them as they occur. The ASU is effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of the ASU.

In June 2016, the Financial Accounting Standards Board issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326)” ("ASU 2016-13"). ASU 2016-13 requires that financial assets measured at amortized cost be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. ASU 2016-13 will become effective for the Company for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact of the guidance on its consolidated financial statements.

NOTE 3:- INVENTORIES

	June 30,		December 31,
	2016		2015
	Unaudited
Raw materials	$	1,974	$	2,284
Work in process		212		24
Finished goods		2,230		2,389
	$	4,416	$	4,697

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POINTER TELOCATION LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

NOTE 4:- COMMITMENTS AND CONTINGENT LIABILITIES

a. Charges:

As collateral for its liabilities, the Company has recorded floating charges on all of its assets, including the intellectual property and equipment, in favor of banks.

b. Collateral:

The Company provided bank guarantees in the amount of $399 in favor of its lessor customs and customers.

c. Royalties:

The Company has undertaken to pay royalties to the BIRD Foundation ("BIRD"), at the rate of 5% on sales proceeds of products developed with the participation of BIRD up to the amount received, linked to the U.S. dollar. The contingent obligation as of June 30, 2016 is $2,444. No royalties were accrued or paid during 2016 and 2015.

d. Litigation:

1. As of June 30, 2016, several claims were filed against the Company, mainly by customers. The claims are in an amount aggregating to approximately $266. The substance of the claims is the malfunction of the Company's products, which occurred during the ordinary course of business. The Company's management, based on the opinion of its legal counsel, in of the opinion that no material costs will arise in respect to these claims.

2. In August 2014, Pointer Brazil received a notification of lack of payments of $ 484 of VAT tax (Brazilian ICMS tax) plus $ 2,029 of interest and penalty totaling $ 2,513 of infraction. The Company is defending this litigation at court and made a provision of $77 thousands; the total timeframe of litigation is up to 14 years.

3. In July 2015, the company received a tax deficiency notice against Pointer Brazil, pursuant to which Pointer or Pointer Brazil is required to pay an aggregate amount of approximately US$ 12.1 million. The claim is based on the argument that the services provided by Pointer Brazil should be classified as "Telecommunication Services", and therefore subject to the State Value Added Tax. The Company based on the opinion of its legal counsel, in of the opinion that no material costs will arise in respect to these claims and did not make any provision once this issue has two precedents that won the same type of litigation.

e. Commitments:

The Company and DBSI Investment Ltd. ("DBSI"), an equity owner in the Company (see Note 7), have entered into a management services agreement pursuant to which DBSI shall provide management services in consideration of annual management fees of $180 for a period of three years commencing on May 27, 2014.

13 

POINTER TELOCATION LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

NOTE 4:- COMMITMENTS AND CONTINGENT LIABILITIES (Cont.)

f. Covenants:

a. In respect of the bank loans provided to the Company for the purpose of funding the 2007 acquisition transaction, pursuant to which the Company acquired the activities and assets of Cellocator Ltd. ("Cellocator") and the acquisition of Pointer Brazil and in connection with the utilization of its credit facilities, the Company is required to meet certain financial covenants as follows:

1. The ratio of the shareholders’ equity to the total consolidated assets will not be less than 20% and the shareholders equity will not be less than $20,000, starting December 31, 2007.

2. The ratio of the Company and its subsidiaries' debt (debt to banks, convertible debenture and loans from others that are not subordinated to the bank less cash) to the annual EBITDA will not exceed 4 in 2010 and thereafter.

3. The ratio of the Company’s debt (debt to banks, convertible debenture and loans from others was not subordinated to the bank less cash) to the annual EBITDA will not exceed 4.2 in 2013-2014, 3.5 in 2015, 3 in 2016 and 2.5 in 2017 and thereafter.

As of June 30, 2016, the Company is in compliance, and expects to remain in compliance, with the financial covenants of its credit facilities in 2016.

g. In December 2011 one of the Company's Argentinean subsidiaries received a notification from the C.N.C. (Telecommunication Authority Agency) stating that the subsidiary is subject to a new tax (1% over sales related to data transmission) that had not been applicable to the subsidiary in the past.

As of the issuance of these financial statements, the subsidiary had only answered this notification but plans to appeal in the near future. Management has recorded a provision for the full amount (i.e. capital plus interest of $193).

14 

POINTER TELOCATION LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

NOTE 5:- NET EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted net earnings per share from continuing operations:

	Six months ended June 30,				Three months ended June 30,				Year ended December 31,
	2016		2015		2016		2015		2015
	Unaudited
Numerator:
Numerator for basic net earnings per share - Net income from continuing operations	$	2,123	$	2,765	$	1,037	$	1,004	$	3,338
Numerator for diluted net earnings per share - Net income from continuing operations	$	2,123	$	2,765	$	1,037	$	1,004	$	3,338
Denominator:
Denominator for basic net earnings per share - weighted-average number of shares outstanding (in thousands)		7,787		7,695		7,789		7,701		7,725
Denominator for diluted net earnings per share - adjusted weighted average shares and assumed exercises (in thousands)		7,924		7,961		7,934		7,957		7,938
Basic net earnings per share from continuing operations	$	0.27	$	0.36	$	0.13	$	0.13	$	0.42
Diluted net earnings per share from continuing operations	$	0.27	$	0.35	$	0.13	$	0.13	$	0.42

NOTE 6:- INCOME TAXES

The effective tax rate for the six months ended June 30, 2016 was 29% as compared to 20% for the six months ended June 30, 2015. The increase is mainly due adjustment in tax assets in respect with the updated tax rate in Israel.

NOTE 7:- BALANCES AND TRANSACTIONS WITH RELATED PARTIES

a. Balances with related parties:

	June 30,		December 31,
	2016		2015
	Unaudited
Other accounts payable and accrued expenses:
DBSI (see note 4e)	$	53	$	53

b. Transactions with related parties:

	Six months ended June 30,				Three months ended June 30,				Year ended December 31,
	2016		2015		2016		2015		2015
	Unaudited
Management fees to DBSI (see Note 4e)	$	90	$	90	$	45	$	45	$	180
Sales to related parties	$	22	$	21	$	11	$	12	$	52
Purchase from related parties	$	24	$	26	$	7	$	26	$	145

15 

POINTER TELOCATION LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands

NOTE 7:- BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Cont.)

c. Long term loan related parties:

The Company has granted a long term loan to its related party Shagrir. The loan bears no interest and will not be paid before 31 December 2020. As of June 30, 2016 the loan balance is $820 thousands.

NOTE 8:- SEGMENT INFORMATION

a. The Company had three reporting segments until the spin-off of Shagrir (see note 1), while the RSA segment was related to Shagrir's operation. Following the spin-off the Company operates with two reporting segments. The following segment identification is identical to the segment used in the latest annual consolidated financial report.

b. The following presents segment results of operations for the six months ended June 30, 2016 (unaudited):

	Cellocator segment		MRM segment		Elimination			Total
Segments revenues	$	11,193	$	23,685	$	(3,838	)	$	31,040
Segments operating profit	$	772	$	2,351	$	104		$	3,227
Segments tangible and intangible assets	$	8,431	$	25,627	$	2,162		$	36,220
Depreciation and amortization	$	166	$	964	$	-		$	1,130
Expenditures for assets	$	51	$	1,078	$	-		$	1,129

c. The following presents segment results of operations for the six months ended June 30, 2015 (unaudited):

	Cellocator segment		MRM segment		Elimination			Total
Segments revenues	$	11,009	$	22,484	$	(2,590	)	$	30,903
Segments operating profit	$	1,243	$	1,717	$	185		$	3,145
Segments tangible and intangible assets	$	8,758	$	26,926	$	3,179		$	38,863
Depreciation and amortization	$	171	$	1,175	$	-		$	1,346
Expenditures for assets	$	79	$	906	$	-		$	985

16 

POINTER TELOCATION LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands

NOTE 8:- SEGMENT INFORMATION (Cont.)

d. The following presents segment results of operations for the three months ended June 30, 2016 (unaudited):

	Cellocator segment		MRM segment		Elimination			Total
Segments revenues	$	5,591	$	12,248	$	(1,625	)	$	16,214
Segments operating profit	$	166	$	1,438	$	41		$	1,645
Segments tangible and intangible assets	$	8,431	$	25,627	$	2,162		$	36,220
Depreciation and amortization	$	83	$	530	$	-		$	613
Expenditures for assets	$	31	$	476	$	-		$	507

e. The following presents segment results of operations for the three months ended June 30, 2015 (unaudited):

	Cellocator segment		MRM  segment		Elimination			Total
Segments revenues	$	5,545	$	11,124	$	(1,178	)	$	15,491
Segments operating profit	$	612	$	730	$	69		$	1,411
Segments tangible and intangible assets	$	8,758	$	26,926	$	3,179		$	38,863
Depreciation and amortization	$	85	$	584	$	-		$	669
Expenditures for assets	$	50	$	466	$	-		$	516

17 

POINTER TELOCATION LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands

NOTE 8:- SEGMENT INFORMATION (Cont.)

f. The following presents segment results of operations for the year ended December 31, 2015:

	Cellocator segment		MRM  segment		Elimination			Total
Segments revenues	$	19,489	$	47,938	$	(6,860	)	$	60,567
Segments operating profit (loss)	$	1,000	$	3,848	$	(205	)	$	4,643
Segments tangible and intangible assets	$	8,469	$	24,836	$	1,804		$	35,109
Depreciation, amortization and impairment expenses	$	338	$	3,067	$	-		$	3,405
Expenditures for assets	$	149	$	1,647	$	-		$	1,796

NOTE 9:- DISCONTINUED OPERATION

a. Below are the main groups of assets and liabilities classified as discontinued operation:

	December 31,
	2015
Assets:
Cash and cash equivalents		2,095
Accounts receivable		8,909
Other accounts receivable and prepaid expenses		444
Inventories		168
Severance pay fund		5,446
Property and equipment		6,117
Goodwill		15,365
Intangible assets		373
Deferred tax asset		57
Assets of discontinued operation	$	38,974
Liabilities:
Short-term bank credit and current maturities of long-term bank loans		84
Trade Payables		7,127
Other accounts payable and accrued expenses		7,931
Long term loans from banks		180
Accrued severance pay		5,783
Liabilities of discontinued operation	$	21,105
Net assets/liabilities of discontinued operation	$	17,869

18 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands

NOTE 9:- DISCONTINUED OPERATION (Cont.)

b. Below is data of the operating results attributed to the discontinued operation:

	Six months ended June 30,				Three months ended June 30,						Year ended December 31,
	2016		2015		2016			2015			2015
	Unaudited				Unaudited
Revenue from sales		18,247		19,385		7,403			9,820			40,498
Cost of sales		15,260		16,893		6,202			8,543			35,427
Gross profit		2,987		2,492		1,201			1,277			5,071
Selling, general and administrative expenses		2,183		1,926		917			1,045			3,649
Operating income		804		566		284			232			1,422
Financial expenses,  net		53		399		33			227			805
Other expenses (income), net		348		-		348			-			(15	)
Taxes on income		249		110		71			46			97
Income (loss) from discontinued operation		154		57		(168	)		(41	)		535

c. Below is data of the net cash flows provided by (used in) the discontinued operation:

	Six months ended June 30,						Three months ended June 30,						Year ended December 31,
	2016			2015			2016			2015			2015
	Unaudited						Unaudited
Operating activities		116			1,232			338			662			4,047
Investing activities		(1,187	)		134			(690	)		51			(746	)
Financing activities		251			(6	)		221			(122	)		(250	)

NOTE 10:- SUBSEQUENT EVENTS

a. On August 29, 2016 the Company signed a binding agreement to acquire Cielo Telecom, a fleet management services company based in South Brazil. Cielo Telecom manages fleet customers covering approximately 16,000 trucks. The closing of the agreement is subject to the fulfillment of certain precedent conditions. In consideration for this acquisition, Pointer will make cash payment of approximately BRL 21 million (approximately $6.5 million).

- - - - - - - - - - - - - - - - - - -

19 

EX-99.2

Exhibit 2

OPERATING AND FINANCIAL REVIEW AND PROSPECTS

The information contained in this section should be read in conjunction with (1) our unaudited condensed interim consolidated financial statements as of June 30, 2016 and for the six months then ended and related notes included elsewhere in this report and (2) our consolidated financial statements and related notes included in our Annual Report on Form 20-F for the year ended December 31, 2015 and the other information contained in such Annual Report, particularly the information in Item 5 - “Operating and Financial Review and Prospects”. Our financial statements have been prepared in accordance with generally accepted accounting principles in United States (“US GAAP”).

Forward-Looking Statements

The following discussion contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The use of the words “may,” “believe,” “will,” “projects,” “expects,” “plans” or “intends,” or words of similar import, identifies a statement as “forward-looking.” The forward-looking statements included herein are based on current expectations that involve a number of risks and uncertainties. These forward-looking statements are based on the assumption that the Company will not lose a significant customer or customers or experience increased fluctuations of demand or rescheduling of purchase orders, that our markets will be maintained in a manner consistent with our historical experience , that our products will remain accepted within their respective markets and will not be replaced by new technology, that competitive conditions within our markets will not change materially or adversely, that we will retain key technical and management personnel, that our forecasts will accurately anticipate market demand, and that there will be no material adverse change in our operations or business. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions, and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. In addition, our business and operations are subject to substantial risks which increase the uncertainty inherent in the forward-looking statements. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives or plans will be achieved. Factors that could cause actual results to differ from our expectations or projections include the risks and uncertainties relating to our business described in our annual report on Form 20-F.  Except as required by applicable law, including the securities laws of the United States, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

A. RESULTS OF OPERATIONS

On June 8, 2016 Pointer spun off its Israeli subsidiary, Shagrir Group Vehicle Services Ltd. (“Shagrir”), through which Pointer carried out its road side assistance (RSA) activities and listed Shagrir's shares on the Tel Aviv Stock Exchange. The results of Shagrir until that date are included in Pointer’s results as discontinued operations.

Six months Ended June 30,

(in thousands of U.S. Dollars – except weighted average number of ordinary shares,

and basic and diluted income per ordinary share)

Statement of Income Data:	2016	2015
Revenues:
Products	11,555	11,535
Services	19,485	19,368
Total Revenues	31,040	30,903
Cost of Revenues:
Products	7,178	6,906
Services	8,774	7,372
Total Cost of Revenues	15,952	16,278
Gross Profit	15,088	14,625

1 

Operating Expenses:
Research and development, net	1,824	1,718
Sales and marketing expenses	5,615	5,079
General and administrative	4,227	4,391
Amortization of intangible assets	195	292
Total Operating Expenses	11,861	11,480
Total Operating Income	3,227	3,145
Financial expenses (income), net	243	(221)
Other (income) expenses	(4)	13
Income before tax on income	2,988	3,353
Taxes on income	854	645
Income from continuing operations	2,134	2,708
Income from discontinued operations, net	154	57
Net income	2,288	2,765
Net income from continuing operations attributable to Equity holders of the parent	2,123	2,765
Net income (loss) from continuing operations attributable to Non-controlling interests	11	(57)
Net income from discontinued operations attributable to Equity holders of the parent	120	103
Net income (loss) from discontinued operations attributable to Non-controlling interests	34	(46)
Basic net earnings per share from continuing operations attributable to Pointer Telocation Ltd. shareholders	$0.27	$0.36
Diluted net earnings per share from continuing operations attributable to Pointer Telocation Ltd. shareholders	$0.27	$0.35
Basic weighted average number of shares outstanding (in thousands)	7,787	7,695
Diluted weighted average number of shares outstanding (in thousands)	7,924	7,961

Six Months Ended June 30, 2016 Compared with Six Months Ended June 30, 2015

Revenues. Revenues increased by $0.1 million or 0.4%, from $30.9 million in the six months ending June 30, 2015 to $31.0 million in the six months ending June 30, 2016.

The revenues from the sale of our products were $11.6 million in the six months ending June 30, 2016, approximately the same as in the six months ending June 30, 2015.

The revenues from our services increased by $0.1 million, or 0.6%, from $19.4 million in the six months ending June 30, 2015 to $19.5 million in the six months ending June 30, 2016.

The increase was primarily attributable to an increase in recurring revenues from fleet management and stolen vehicle recovery services, partially offset by the devaluation of various local currencies where we have operations against the US dollar.

Revenues from our services in the six months ending June 30, 2016 accounted for 62.8% of our total revenues as compared with 62.7% in the six months ending June 30, 2015.

2 

Cost of Revenues. Our cost of revenues increased by $0.3 million to $16.0 million for the six months ending June 30, 2016 as compared to $16.3 million for the same period in 2015.

Gross Profit. Our gross profit increased to $15.1 million in the six months ending June 30, 2016, as compared to $14.6 million for the same period in 2015. As a percentage of total revenues, gross profit accounted for 48.6% in the six months ending June 30, 2016 compared to 47.3% in the six months ending June 30, 2015.

Our gross margin on products sales in the six months ending June 30, 2016 was 38% compared to 40% in the six months ending June 30, 2015. This decrease is mainly associated with price erosion which affects our revenues from products.

Gross margin for services was approximately 55% in the six months ending June 30, 2016, compared to 52% in the six months ending June 30, 2015. This increase is primarily attributed to expenses efficiency, while increasing subscribers' base.

Research and Development Costs. Research and development expenses were $1.8 million in the six months ending June 30, 2016, compared to $1.7 million in the six months ending June 30, 2015. We intend to maintain our level of R&D expenditures in order to bring new technologies to the market.

Sales and Marketing Expenses. Sales and marketing costs increased by $0.5 million to $5.6 million in the six months ending June 30, 2016 from $5.1 million in the six months ending June 30, 2015. The increase is mainly due to the increase in sales and marketing efforts. We intend to continue to increase our sales efforts during the next twelve months.

General and Administrative Expenses. General and administrative expenses decreased by $0.2 million to $4.2 million in the six months ending June 30, 2016 from $4.4 million in the six months ending June 30, 2015.

Amortization of Intangible Assets and Impairment of Long Lived Assets. Amortization of intangible assets and impairment of long lived assets was $0.2 million in the six months ending June 30, 2016 compared to $0.3 million in the six months ending June 30, 2015. The decrease is mainly due to the end of the amortization period of certain of our assets.

Operating Profit. As a result of the foregoing, we recorded a $3.2 million operating profit in the six months ending June 30, 2016, compared to an operating profit of $3.1 million in the six months ending June 30, 2015.

Financial Expenses (Net). Financial expenses increased from $0.2 million financial income in the six months ending June 30, 2015 to $0.2 million financial expenses in the six months ending June 30, 2016. The increase is due to the impact of our New Israeli Shekel (“NIS”) denominated loans that were linked to the US dollar.

Taxes on income.  Taxes on income were $0.9 million in the six months ending June 30, 2016 comparing to $0.6 million in the six months ending June 30, 2015. The effective tax rate for the six months ended June 30, 2016, was 29% as compared to 20% for the six months ended June 30, 2015. The increase is mainly adjustments in tax assets in respect with the updated tax rate in Israel.

3 

Net Income from continuing operations. We recorded net income from continuing operations of $2.1 million in the six months ending June 30, 2016 compared to $2.7 million in the six months ending June 30, 2015.

Net Income from continuing operations attributable to Pointer shareholders. In the six months ended June 30, 2016, we recorded net income from continuing operations attributable to Pointer shareholders of $2.1 million, compared to $2.8 million in the six months ended June 30, 2015.

Net income (loss) from continuing operations attributable to non-controlling interests. We recorded net income from continuing operations attributable to non-controlling interests in the amount of $0.01 million in the six months ended June 30, 2016, compared to $(0.1) million net loss in the six months ended June 30, 2015.

Impact of Exchange Rate Fluctuations on Results of Operations, Liabilities and Assets

Our results of operations, liabilities and assets were mainly impacted by the fluctuations of exchange rates between the U.S. Dollar and the NIS, Brazilian Real, Argentinean Peso, Mexican Peso, the Euro and the South African Rand.

During the six months ended June 30, 2016, the exchange rate of the U.S. Dollar in relation to the NIS decreased by 1.7%, while the Israeli Consumer Price Index (“CPI”) increased by 0.3%. During the six months ended June 30, 2015 there was a decrease of 3.1% in the exchange rate of the U.S. Dollar in relation to the NIS and a decrease of 1% the CPI.

We believe that the rate of inflation in Israel did not have a material effect on our business to date. However, our U.S. Dollar costs will increase if inflation in Israel exceeds the revaluation of the NIS against the U.S. Dollar.

Regarding our operations of our subsidiary Pointer Do Brasil Comercial Ltda. ("Pointer Brazil") and the fact that most of Pointer Brazil’s revenues are denominated in the Brazilian Real, while our consolidated financial statements are expressed in U.S. dollars, we believe that inflation in Brazil and fluctuations in the exchange rate between the U.S. Dollar and Brazil Real may have a significant effect on the business and overall profitability of Pointer Brazil and, as a consequence, on the results of our operations. From January 1, 2016 to June 30, 2016, the value of the Brazil Real increased by approximately 18% against the U.S. Dollar. From January 1, 2016 until June 30, 2016, the U.S. Dollar - Brazil Real exchange rate fluctuated between 3.227 and 4.132 Real to the Dollar.

Regarding our operations in Argentina and the fact that most of the revenues of our subsidiary Pointer Argentina S.A (“Pointer Argentina”) are denominated in the Argentinean Peso, while our consolidated financial statements are expressed in U.S. dollars, we believe that inflation in Argentina and fluctuations in the exchange rate between the U.S. Dollar and Argentinean Peso may have a significant effect on the business and overall profitability of Pointer Argentina and as a consequence, on the results of our operations. From January 1, 2016 to June 30, 2016, the value of the Argentinean Peso decreased by approximately 16% against the U.S. Dollar. From January 1, 2016 until June 30, 2016 the U.S. Dollar – Argentinean Peso exchange rate fluctuated between 12.910 and 15.831 Pesos to the Dollar.

Regarding our operations of our subsidiary Pointer Recuperation de Mexico S.A. ("Pointer Mexico") and the fact that most of Pointer Mexico’s revenues are denominated in the Mexican Peso, while our consolidated financial statements are expressed in U.S. dollars, we believe that inflation in Mexico and fluctuations in the exchange rate between the U.S. Dollar and Mexican Peso may have a significant effect on the business and overall profitability of Pointer Mexico and as a consequence, on the results of our operations. From January 1, 2016 to June 30, 2016, the value of the Mexican Peso decreased by approximately 7% against the U.S. dollar. From January 1, 2016 until June 30, 2016, the U.S. Dollar – Mexican Peso exchange rate fluctuated between 17.172 and 19.094 Pesos to the Dollar.

4 

Regarding our operations of our subsidiary Pointer SA (PTY) Ltd. ("Pointer South Africa") and the fact that most of Pointer South Africa’s revenues are denominated in the South African Rand, while our consolidated financial statements are expressed in U.S. dollars, we believe that inflation in South Africa and fluctuations in the exchange rate between the U.S. Dollar and South African Rand may have a significant effect on the business and overall profitability of Pointer South Africa and as a consequence, on the results of our operations. From January 1, 2016 to June 30, 2016, the value of the South African Rand increased by approximately 4% against the U.S. Dollar. From January 1, 2016 until June 30, 2016, the U.S. Dollar – South African Rand exchange rate fluctuated between 14.207 and 16.809 Rand to the Dollar.

B. LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 2016, we had a working capital of $8.8 million, our current assets to current liabilities ratio was 151%, we had cash and cash equivalents of $7.7 million and an unused credit facility of $12.5 million. We believe that we have access to sufficient capital to meet our requirements for at least the next twelve months.

Our credit facilities and loans contain a number of restrictive covenants that limit the operating and financial flexibility of the Company. As of June 30, 2016 we are in compliance with the financial covenants of our credit facilities.

In the six months ended June 30, 2016, net cash provided by our continuing operating activities amounted to $4.9 million as compared to net cash provided from continuing operating activities of $4.1 million in the six months ended June 30, 2015. The increase was primarily attributable to an increase in the working capital in the six months ended June 30, 2016.

In the six months ended June 30, 2016, net cash used in our continuing investment activities was $2.4 million as compared to $0.7 million in the six months ended June 30, 2015. The increase was primarily attributable to an increase in the purchase of property and equipment.

In the six months ended June 30, 2016, net cash used in our financing activities was $3.9 million as compared to net cash provided by financing activities of $3.1 million in the six months ended June 30, 2015. The increase was primarily attributable to distribution of the shares of Shagrir as a dividend in kind, off-set by receipt of long term loans from banks.

5 

XML

Document And Entity Information	6 Months Ended
	Jun. 30, 2016
Document Information [Line Items]
Entity Registrant Name	Pointer Telocation Ltd
Entity Central Index Key	0000920532
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Trading Symbol	PNTR
Document Type	6-K
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2016

XML

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents at the end of the period-continuing operations	$ 7,745	$ 7,252
Trade receivables (net of allowance for doubtful accounts of $1,044 and $1,347 at June 30, 2016 and December 31, 2015, respectively)	11,627	9,494
Other accounts receivable and prepaid expenses	2,360	1,596
Inventories	4,416	4,697
Current assets of discontinued operation	0	11,616
Total current assets	26,148	34,655
LONG-TERM ASSETS:
Long term loans to related parties	820	0
Long-term accounts receivable	499	490
Severance pay fund	3,000	2,740
Property and equipment, net	3,614	3,278
Other intangible assets, net	398	443
Goodwill	32,208	31,388
Deferred tax asset	2,202	3,086
Long Term assets of discontinued operation	0	27,358
Total long-term assets	42,741	68,783
Total assets	68,889	103,438
CURRENT LIABILITIES:
Short-term bank credit and current maturities of long-term loans	4,572	4,820
Trade payables	5,871	4,651
Deferred revenues and customer advances	735	671
Other accounts payable and accrued expenses	6,160	5,168
Current liabilities of discontinued operation	0	15,142
Total current liabilities	17,338	30,452
LONG-TERM LIABILITIES:
Long-term loans from banks	6,340	8,385
Deferred revenues and other long-term liabilities	331	258
Accrued severance pay	3,429	3,345
Long term liabilities of discontinued operation	0	5,963
Total long term liabilities	10,100	17,951
Pointer Telocation Ltd's shareholders' equity:
Ordinary shares of NIS 3 par value -Authorized: 16,000,000 unaudited shares at June 30, 2016 and December 31, 2015; Issued and outstanding: 7,799,244 and 7,784,644 shares at June 30, 2016 and December 31, 2015, respectively	5,775	5,770
Additional paid-in capital	128,183	128,410
Accumulated other comprehensive income	(5,351)	(6,254)
Accumulated deficit	(87,316)	(71,822)
Total Pointer Telocation Ltd.'s shareholders' equity	41,291	56,104
Non-controlling interest	160	(1,069)
Total equity	41,451	55,035
Total liabilities and equity	$ 68,889	$ 103,438

XML

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands	Jun. 30, 2016 USD ($) shares	Jun. 30, 2016 ₪ / shares	Dec. 31, 2015 USD ($) shares	Dec. 31, 2015 ₪ / shares
Allowance for Doubtful Accounts Receivable, Current | $	$ 1,044		$ 1,347
Ordinary shares, Par or Stated Value Per Share (in dollars per share) | ₪ / shares		₪ 3		₪ 3
Ordinary shares, Shares Authorized	16,000,000		16,000,000
Ordinary shares, Shares, Issued	7,799,244		7,784,644
Ordinary shares, Shares, Outstanding	7,799,244		7,784,644

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INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Revenues:
Products	$ 6,048	$ 5,753	$ 11,555	$ 11,535	$ 22,266
Services	10,166	9,738	19,485	19,368	38,301
Total revenues	16,214	15,491	31,040	30,903	60,567
Cost of revenues:
Products	3,782	3,583	7,178	6,906	13,435
Services	4,702	4,673	8,774	9,372	17,879
Total cost of revenues	8,484	8,256	15,952	16,278	31,314
Gross profit	7,730	7,235	15,088	14,625	29,253
Operating expenses:
Research and development	919	824	1,824	1,718	3,409
Selling and marketing	2,968	2,640	5,615	5,079	10,468
General and administrative	2,093	2,220	4,227	4,391	9,278
Amortization of intangible assets	105	140	195	292	538
Impairment of intangible and tangible assets	0	0	0	0	917
Total operating expenses	6,085	5,824	11,861	11,480	24,610
Operating income	1,645	1,411	3,227	3,145	4,643
Financial expenses (income), net	323	147	243	(221)	63
Other expenses (income), net	2	13	(4)	13	10
Income before taxes on income	1,320	1,251	2,988	3,353	4,570
Taxes on income	276	309	854	645	1,307
Net income from continuing operations	1,044	942	2,134	2,708	3,263
Net income (loss) from discontinued operations, net	(168)	(41)	154	57	535
Net income	876	901	2,288	2,765	3,798
Profit (loss) from continuing operations attributable to:
Pointer Telocation Ltd's shareholders	1,037	1,004	2,123	2,765	3,338
Non-controlling interests	7	(62)	11	(57)	(75)
Profit (loss) from continuing operations	1,044	942	2,134	2,708	3,263
Profit (loss) from discontinued operations attributable to:
Pointer Telocation Ltd's shareholders	(175)	(1)	120	103	607
Non-controlling interests	7	(40)	34	(46)	(72)
Net income (loss) from discontinued operations, net	$ (168)	$ (41)	$ 154	$ 57	$ 535
Earnings per share from continuing operations attributable to Pointer Telocation Ltd's shareholders:
Basic net earnings per share (in dollars per share)	$ 0.13	$ 0.13	$ 0.27	$ 0.36	$ 0.43
Diluted net earnings per share (in dollars per share)	$ 0.13	$ 0.13	$ 0.27	$ 0.35	$ 0.42
Weighted average -Basic number of shares (in shares)	7,789,365	7,701,317	7,787,009	7,695,000	7,725,246
Weighted average - fully diluted number of shares (in shares)	7,934,321	7,957,222	7,924,421	7,961,010	7,938,489

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INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Share Capital [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income [Member]	Accumulated Deficit [Member]	Noncontrolling Interest [Member]
Balance at Dec. 31, 2014	$ 53,796	$ 5,705	$ 129,618	$ (2,909)	$ (75,767)	$ (2,851)
Balance (in shares) at Dec. 31, 2014		7,688,564
Issuance of share capital	7	$ 2	5	0	0	0
Issuance of share capital (in shares)		12,875
Stock-based compensation expenses	174	$ 0	174	0	0	0
Other comprehensive income	(114)	0	0	(52)	0	(62)
Net income attributable to Non -controlling interest	(101)	0	0	0	0	(101)
Net income attributable to Pointer Telocation Ltd's shareholders	2,866	0	0	0	2,866	0
Balance at Jun. 30, 2015	56,628	$ 5,707	129,797	(2,961)	(72,901)	(3,014)
Balance (in shares) at Jun. 30, 2015		7,701,439
Balance at Dec. 31, 2014	53,796	$ 5,705	129,618	(2,909)	(75,767)	(2,851)
Balance (in shares) at Dec. 31, 2014		7,688,564
Issuance of shares in respect of Stock-based compensation	14	$ 3	11	0	0	0
Issuance of shares in respect of Stock-based compensation (in shares)		14,999
Stock-based compensation expenses	309	$ 0	309	0	0	0
Acquisition of non-controlling interests	541	$ 62	(1,528)	0	0	2,007
Acquisition of non-controlling interests (in shares)		81,081
Other comprehensive income	(3,423)	$ 0	0	(3,345)	0	(78)
Net income attributable to Non -controlling interest	(147)	0	0	0	0	(147)
Net income attributable to Pointer Telocation Ltd's shareholders	3,945	0	0	0	3,945	0
Balance at Dec. 31, 2015	55,035	$ 5,770	128,410	(6,254)	(71,822)	(1,069)
Balance (in shares) at Dec. 31, 2015		7,784,644
Issuance of shares in respect of Stock-based compensation	7	$ 5	2	0	0	0
Issuance of shares in respect of Stock-based compensation (in shares)		14,600
Stock-based compensation expenses	94	$ 0	94	0	0	0
Other comprehensive income	1,604	0	0	793	0	811
Transaction with shareholders	0	0	(323)	323	0	0
Distribution of a subsidiary as a dividend in kind	(17,577)	0	0	(213)	(17,737)	373
Net income attributable to Non -controlling interest	45	0	0	0	0	45
Net income attributable to Pointer Telocation Ltd's shareholders	2,243	0	0	0	2,243	0
Balance at Jun. 30, 2016	$ 41,451	$ 5,775	$ 128,183	$ (5,351)	$ (87,316)	$ 160
Balance (in shares) at Jun. 30, 2016		7,799,244

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INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015
Accumulated foreign currency translation differences	$ (5,351)	$ (2,961)
Accumulated other comprehensive income	$ (5,351)	$ (2,961)

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INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Cash flows from operating activities:
Net income	$ 876	$ 901	$ 2,288	$ 2,765	$ 3,798
Adjustments required to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	877	979	1,775	1,985	3,959
Impairment of tangible and intangible assets	0	0	0	0	917
Accrued interest and exchange rate changes of debenture and long-term loans	290	376	74	10	(888)
Accrued severance pay, net	74	(6)	121	(38)	17
Gain from sale of property and equipment, net	(53)	(38)	(179)	(72)	(143)
Stock-based compensation	36	83	94	174	309
Decrease in restricted cash	0	0	0	62	62
Decrease in trade receivables, net	(585)	(10)	(4,284)	(513)	(236)
Increase in other accounts receivable and prepaid expenses	(249)	(1,106)	(906)	(1,060)	(469)
Decrease (increase) in inventories	207	(171)	443	(180)	658
Decrease Deferred income taxes	248	197	1,038	387	1,080
Decrease (increase) in long-term accounts receivable	126	12	(9)	14	(91)
Increase in trade payables	296	837	2,042	900	1,277
Increase (decrease) in other accounts payable and accrued expenses	1,293	(701)	2,460	(291)	(1,448)
Net cash provided by operating activities	3,436	1,353	4,957	4,143	8,802
Cash flows from investing activities:
Purchase of property and equipment	(1,284)	(769)	(2,861)	(1,354)	(3,616)
Purchase of other intangible assets	(115)	0	(115)	0	0
Proceeds from sale of property and equipment	118	337	594	648	1,266
Net cash used in investing activities	(1,281)	(432)	(2,382)	(706)	(2,350)
Cash flows from financing activities:
Receipt of long-term loans from banks	0	4,546	95	15,103	14,934
Repayment of long-term loans from banks	(1,123)	(6,335)	(2,250)	(17,729)	(19,503)
Repayment of long-term loans from shareholders	0	(19)	0	(32)	0
Proceeds from issuance of shares and exercise of options, net of issuance costs	0	0	0	6	15
Short-term bank credit, net	83	(18)	128	(486)	(915)
Distribution as a dividend in kind of previously consolidated subsidiary (a)	(1,870)	0	(1,870)	0	0
Net cash used in financing activities	(2,910)	(1,826)	(3,897)	(3,138)	(5,469)
Cash and cash equivalents at the end of the period-continuing operations	7,745	8,254	7,745	8,557	7,252
Effect of exchange rate on cash and cash equivalents	(155)	1,098	(280)	(409)	(193)
Increase (decrease) in cash and cash equivalents	(910)	193	(1,602)	(110)	790
Cash and cash equivalents at the beginning of the period	8,655	8,254	7,252	8,557	8,557
Cash and cash equivalents at the end of the period	7,745	8,447	7,745	8,447	7,252
(b) Non-cash activity:
Purchase of property and equipment	107	208	107	264	378
Cash paid during the year for:
Interest	132	220	270	414	640
Income Taxes	22	6	27	18	27
Continuing Operations [Member]
Cash flows from financing activities:
Cash and cash equivalents at the end of the period-continuing operations	7,252	6,834	7,252	6,834	7,252
Cash and cash equivalents at the beginning of the period			7,252
Cash and cash equivalents at the end of the period	7,252	6,834	7,252	6,834	7,252
Discontinued Operations [Member]
Cash flows from financing activities:
Cash and cash equivalents at the end of the period-continuing operations	0	1,613	0	1,613	2,095
Cash and cash equivalents at the beginning of the period			2,095
Cash and cash equivalents at the end of the period	$ 0	$ 1,613	$ 0	$ 1,613	$ 2,095

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INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - Additional Cash Flow Elements - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
(a) Distribution as a dividend in kind of previously consolidated subsidiary:
Working capital (excluding cash and cash equivalents)	$ (5,443)	$ 0	$ (5,443)	$ 0	$ 0
Property and equipment	7,048	0	7,048	0	0
Goodwill and other intangible assets	15,883	0	15,883	0	0
Other long term liabilities	(1,781)	0	(1,781)	0	0
Non-controlling interest	373	0	373	0	0
Accumulated other comprehensive loss	(213)	0	(213)	0	0
Dividend in kind	(17,737)	0	(17,737)	0	0
Payments of Dividends	(1,870)	0	(1,870)	0	0
(b) Non-cash investing activity:
Purchase of property and equipment	107	208	107	264	378
(c) Supplemental disclosure of cash flow activity:
Interest	132	220	270	414	640
Income taxes	$ 22	$ 6	$ 27	$ 18	$ 27

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GENERAL

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

NOTE 1:- GENERAL

a. On June 8, 2016 Pointer Telocation Ltd. ("the Company") spun off its Israeli subsidiary, Shagrir Group Vehicle Services Ltd. (“Shagrir”), through which the Company carried out its road side assistance (RSA), activities and listed Shagrir's shares on the Tel Aviv Stock Exchange. The results of Shagrir until the spin-off are included in the Company's results and presented as discontinued operations (see note 9).

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SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES

a. Unaudited interim financial statements:

The accompanying consolidated balance sheet as of June 30, 2016, consolidated statements of income and comprehensive income for the three and six months ended June 30, 2016 and 2015 and the consolidated statements of cash flows for the three and six months ended June 30, 2016 and 2015 are unaudited. These unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information. In the preparation of the consolidated financial statements, it applied the significant accounting policies, on a consistent basis to the annual financial statements of the Company as of 31 December 2015.

In the opinion of management, the unaudited interim condensed consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair presentation of the Company's consolidated financial position as of June 30, 2016, the Company's consolidated cash flows and financial performance for the three and six months ended June 30, 2016 and 2015.

The balance sheet at December 31, 2015 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete set of financial statements.

These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended December 31, 2015 included in the Company's Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission ("SEC") on March 31, 2016.

Results for the three and six months ended June 30, 2016 are not necessarily indicative of results that may be expected for the year ending December 31, 2016.

b. Use of estimates:

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and accompanying notes. The company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

c. Principles of consolidation:

Our consolidated financial statements include the accounts of the Company and its' wholly and majority owned subsidiaries, referred to herein as the group.

Intercompany transactions and balances including profits from intercompany sales not yet realized outside the Company, have been eliminated upon consolidation.

d. Accounting Standards still not effective

 

In May 2014, the Financial Accounting Standards Board (FASB) issued a new standard to achieve a consistent application of revenue recognition within the U.S., resulting in a single revenue model to be applied by reporting companies under U.S. generally accepted accounting principles. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. On July 9, 2015, the FASB agreed to delay the effective date by one year. In accordance with the agreed upon delay, the new standard is effective for us beginning in the first quarter of 2018. Early adoption is not permitted. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. We have not yet selected a transition method nor have we determined the impact of the new standard on our consolidated condensed financial statements.

In March 2016, the FASB issued an ASU amending the accounting for stock-based compensation and requiring excess tax benefits and deficiencies to be recognized as a component of income tax expense rather than equity. This guidance also requires excess tax benefits to be presented as an operating activity on the statement of cash flows and allows an entity to make an accounting policy election to either estimate expected forfeitures or to account for them as they occur. The ASU is effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of the ASU.

In June 2016, the Financial Accounting Standards Board issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326)” ("ASU 2016-13"). ASU 2016-13 requires that financial assets measured at amortized cost be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. ASU 2016-13 will become effective for the Company for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact of the guidance on its consolidated financial statements.

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INVENTORIES

6 Months Ended

Jun. 30, 2016

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

NOTE 3:- INVENTORIES

	June 30,		December 31,
	2016		2015
	Unaudited
Raw materials	$	1,974	$	2,284
Work in process		212		24
Finished goods		2,230		2,389
	$	4,416	$	4,697

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COMMITMENTS AND CONTINGENT LIABILITIES

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

NOTE 4:- COMMITMENTS AND CONTINGENT LIABILITIES

a. Charges:

As collateral for its liabilities, the Company has recorded floating charges on all of its assets, including the intellectual property and equipment, in favor of banks.

b. Collateral:

The Company provided bank guarantees in the amount of $399 in favor of its lessor customs and customers.

c. Royalties:

The Company has undertaken to pay royalties to the BIRD Foundation ("BIRD"), at the rate of 5% on sales proceeds of products developed with the participation of BIRD up to the amount received, linked to the U.S. dollar. The contingent obligation as of June 30, 2016 is $2,444. No royalties were accrued or paid during 2016 and 2015.

d. Litigation:

1. As of June 30, 2016, several claims were filed against the Company, mainly by customers. The claims are in an amount aggregating to approximately $266. The substance of the claims is the malfunction of the Company's products, which occurred during the ordinary course of business. The Company's management, based on the opinion of its legal counsel, in of the opinion that no material costs will arise in respect to these claims.

2. In August 2014, Pointer Brazil received a notification of lack of payments of $ 484 of VAT tax (Brazilian ICMS tax) plus $2,029 of interest and penalty totaling $ 2,513 of infraction. The Company is defending this litigation at court and made a provision of $77 thousands; the total timeframe of litigation is up to 14 years.

3. In July 2015, the company received a tax deficiency notice against Pointer Brazil, pursuant to which Pointer or Pointer Brazil is required to pay an aggregate amount of approximately US$12.1 million. The claim is based on the argument that the services provided by Pointer Brazil should be classified as "Telecommunication Services", and therefore subject to the State Value Added Tax. The Company based on the opinion of its legal counsel, in of the opinion that no material costs will arise in respect to these claims and did not make any provision once this issue has two precedents that won the same type of litigation.

e. Commitments:

The Company and DBSI Investment Ltd. ("DBSI"), an equity owner in the Company (see Note 7), have entered into a management services agreement pursuant to which DBSI shall provide management services in consideration of annual management fees of $180 for a period of three years commencing on May 27, 2014.

 

f. Covenants:

a. In respect of the bank loans provided to the Company for the purpose of funding the 2007 acquisition transaction, pursuant to which the Company acquired the activities and assets of Cellocator Ltd. ("Cellocator") and the acquisition of Pointer Brazil and in connection with the utilization of its credit facilities, the Company is required to meet certain financial covenants as follows:

1. The ratio of the shareholders’ equity to the total consolidated assets will not be less than 20% and the shareholders equity will not be less than $20,000, starting December 31, 2007.

2. The ratio of the Company and its subsidiaries' debt (debt to banks, convertible debenture and loans from others that are not subordinated to the bank less cash) to the annual EBITDA will not exceed 4 in 2010 and thereafter.

3. The ratio of the Company’s debt (debt to banks, convertible debenture and loans from others was not subordinated to the bank less cash) to the annual EBITDA will not exceed 4.2 in 2013-2014, 3.5 in 2015, 3 in 2016 and 2.5 in 2017 and thereafter.

As of June 30, 2016, the Company is in compliance, and expects to remain in compliance, with the financial covenants of its credit facilities in 2016.

g. In December 2011 one of the Company's Argentinean subsidiaries received a notification from the C.N.C. (Telecommunication Authority Agency) stating that the subsidiary is subject to a new tax (1% over sales related to data transmission) that had not been applicable to the subsidiary in the past.

As of the issuance of these financial statements, the subsidiary had only answered this notification but plans to appeal in the near future. Management has recorded a provision for the full amount (i.e. capital plus interest of $193).

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NET EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

NET EARNINGS PER SHARE[Text Block]

NOTE 5:- NET EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted net earnings per share from continuing operations:

	Six months ended June 30,				Three months ended June 30,				Year ended December 31,
	2016		2015		2016		2015		2015
	Unaudited
Numerator:
Numerator for basic net earnings per share - Net income from continuing operations	$	2,123	$	2,765	$	1,037	$	1,004	$	3,338
Numerator for diluted net earnings per share - Net income from continuing operations	$	2,123	$	2,765	$	1,037	$	1,004	$	3,338
Denominator:
Denominator for basic net earnings per share - weighted-average number of shares outstanding (in thousands)		7,787		7,695		7,789		7,701		7,725
Denominator for diluted net earnings per share - adjusted weighted average shares and assumed exercises (in thousands)		7,924		7,961		7,934		7,957		7,938
Basic net earnings per share from continuing operations	$	0.27	$	0.36	$	0.13	$	0.13	$	0.42
Diluted net earnings per share from continuing operations	$	0.27	$	0.35	$	0.13	$	0.13	$	0.42

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INCOME TAXES

6 Months Ended

Jun. 30, 2016

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 6:- INCOME TAXES

The effective tax rate for the six months ended June 30, 2016 was 29% as compared to 20% for the six months ended June 30, 2015. The increase is mainly due adjustment in tax assets in respect with the updated tax rate in Israel.

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BALANCES AND TRANSACTIONS WITH RELATED PARTIES

6 Months Ended

Jun. 30, 2016

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

NOTE 7:- BALANCES AND TRANSACTIONS WITH RELATED PARTIES

a. Balances with related parties:

	June 30,		December 31,
	2016		2015
	Unaudited
Other accounts payable and accrued expenses:
DBSI (see note 4e)	$	53	$	53

b. Transactions with related parties:

	Six months ended June 30,				Three months ended June 30,				Year ended December 31,
	2016		2015		2016		2015		2015
	Unaudited
Management fees to DBSI (see Note 4e)	$	90	$	90	$	45	$	45	$	180
Sales to related parties	$	22	$	21	$	11	$	12	$	52
Purchase from related parties	$	24	$	26	$	7	$	26	$	145

c. Long term loan related parties:  

The Company has granted a long term loan to its related party Shagrir. The loan bears no interest and will not be paid before 31 December 2020. As of June 30, 2016 the loan balance is $820 thousands.

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SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 8:- SEGMENT INFORMATION

a. The Company had three reporting segments until the spin-off of Shagrir (see note 1), while the RSA segment was related to Shagrir's operation. Following the spin-off the Company operates with two reporting segments. The following segment identification is identical to the segment used in the latest annual consolidated financial report.

b. The following presents segment results of operations for the six months ended June 30, 2016 (unaudited):

	Cellocator segment		MRM  segment		Elimination		Total
Segments revenues	$	11,193	$	23,685	$	(3,838)	$	31,040
Segments operating profit	$	772	$	2,351	$	104	$	3,227
Segments tangible and intangible assets	$	8,431	$	25,627	$	2,162	$	36,220
Depreciation and amortization	$	166	$	964	$	-	$	1,130
Expenditures for assets	$	51	$	1,078	$	-	$	1,129

c. The following presents segment results of operations for the six months ended June 30, 2015 (unaudited): 

	Cellocator segment		MRM  segment		Elimination		Total
Segments revenues	$	11,009	$	22,484	$	(2,590)	$	30,903
Segments operating profit	$	1,243	$	1,717	$	185	$	3,145
Segments tangible and intangible assets	$	8,758	$	26,926	$	3,179	$	38,863
Depreciation and amortization	$	171	$	1,175	$	-	$	1,346
Expenditures for assets	$	79	$	906	$	-	$	985

d. The following presents segment results of operations for the three months ended June 30, 2016 (unaudited):

	Cellocator segment		MRM  segment		Elimination		Total
Segments revenues	$	5,591	$	12,248	$	(1,625)	$	16,214
Segments operating profit	$	166	$	1,438	$	41	$	1,645
Segments tangible and intangible assets	$	8,431	$	25,627	$	2,162	$	36,220
Depreciation and amortization	$	83	$	530	$	-	$	613
Expenditures for assets	$	31	$	476	$	-	$	507

e. The following presents segment results of operations for the three months ended June 30, 2015 (unaudited):

	Cellocator  segment		MRM  segment		Elimination		Total
Segments revenues	$	5,545	$	11,124	$	(1,178)	$	15,491
Segments operating profit	$	612	$	730	$	69	$	1,411
Segments tangible and intangible assets	$	8,758	$	26,926	$	3,179	$	38,863
Depreciation and amortization	$	85	$	584	$	-	$	669
Expenditures for assets	$	50	$	466	$	-	$	516

f. The following presents segment results of operations for the year ended December 31, 2015:

	Cellocator  segment		MRM  segment		Elimination		Total
Segments revenues	$	19,489	$	47,938	$	(6,860)	$	60,567
Segments operating profit (loss)	$	1,000	$	3,848	$	(205)	$	4,643
Segments tangible and intangible assets	$	8,469	$	24,836	$	1,804	$	35,109
Depreciation, amortization and impairment expenses	$	338	$	3,067	$	-	$	3,405
Expenditures for assets	$	149	$	1,647	$	-	$	1,796

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DISCONTINUED OPERATION

6 Months Ended

Jun. 30, 2016

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

NOTE 9:- DISCONTINUED OPERATION

a. Below are the main groups of assets and liabilities classified as discontinued operation:

	December 31,
	2015
Assets:
Cash and cash equivalents		2,095
Accounts receivable		8,909
Other accounts receivable and prepaid expenses		444
Inventories		168
Severance pay fund		5,446
Property and equipment		6,117
Goodwill		15,365
Intangible assets		373
Deferred tax asset		57
Assets of discontinued operation	$	38,974
Liabilities:
Short-term bank credit and current maturities of long-term bank loans		84
Trade Payables		7,127
Other accounts payable and accrued expenses		7,931
Long term loans from banks		180
Accrued severance pay		5,783
Liabilities of discontinued operation	$	21,105
Net assets/liabilities of discontinued operation	$	17,869

b. Below is data of the operating results attributed to the discontinued operation:

	Six months ended June 30,				Three months ended June 30,				Year ended December 31,
	2016		2015		2016		2015		2015
	Unaudited				Unaudited
Revenue from sales		18,247		19,385		7,403		9,820		40,498
Cost of sales		15,260		16,893		6,202		8,543		35,427
Gross profit		2,987		2,492		1,201		1,277		5,071
Selling, general and administrative expenses		2,183		1,926		917		1,045		3,649
Operating income		804		566		284		232		1,422
Financial expenses, net		53		399		33		227		805
Other expenses (income), net		348		-		348		-		(15)
Taxes on income		249		110		71		46		97
Income (loss) from discontinued operation		154		57		(168)		(41)		535

c. Below is data of the net cash flows provided by (used in) the discontinued operation:

	Six months ended June 30,				Three months ended June 30,				Year ended December 31,
	2016		2015		2016		2015		2015
	Unaudited				Unaudited
Operating activities		116		1,232		338		662		4,047
Investing activities		(1,187)		134		(690)		51		(746)
Financing activities		251		(6)		221		(122)		(250)

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SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2016

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE 10:- SUBSEQUENT EVENTS

a. On August 29, 2016 the Company signed a binding agreement to acquire Cielo Telecom, a fleet management services company based in South Brazil. Cielo Telecom manages fleet customers covering approximately 16,000 trucks. The closing of the agreement is subject to the fulfillment of certain precedent conditions. In consideration for this acquisition, Pointer will make cash payment of approximately BRL 21 million (approximately $6.5 million).

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SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

a. Unaudited interim financial statements:

The accompanying consolidated balance sheet as of June 30, 2016, consolidated statements of income and comprehensive income for the three and six months ended June 30, 2016 and 2015 and the consolidated statements of cash flows for the three and six months ended June 30, 2016 and 2015 are unaudited. These unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information. In the preparation of the consolidated financial statements, it applied the significant accounting policies, on a consistent basis to the annual financial statements of the Company as of 31 December 2015.

In the opinion of management, the unaudited interim condensed consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair presentation of the Company's consolidated financial position as of June 30, 2016, the Company's consolidated cash flows and financial performance for the three and six months ended June 30, 2016 and 2015.

The balance sheet at December 31, 2015 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete set of financial statements.

These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended December 31, 2015 included in the Company's Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission ("SEC") on March 31, 2016.

Results for the three and six months ended June 30, 2016 are not necessarily indicative of results that may be expected for the year ending December 31, 2016.

Use of Estimates, Policy [Policy Text Block]

b. Use of estimates:

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and accompanying notes. The company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Consolidation, Policy [Policy Text Block]

c. Principles of consolidation:

Our consolidated financial statements include the accounts of the Company and its' wholly and majority owned subsidiaries, referred to herein as the group.

Intercompany transactions and balances including profits from intercompany sales not yet realized outside the Company, have been eliminated upon consolidation.

Accounting Standards Still Not Effective [Policy Text Block]

d. Accounting Standards still not effective

In May 2014, the Financial Accounting Standards Board (FASB) issued a new standard to achieve a consistent application of revenue recognition within the U.S., resulting in a single revenue model to be applied by reporting companies under U.S. generally accepted accounting principles. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. On July 9, 2015, the FASB agreed to delay the effective date by one year. In accordance with the agreed upon delay, the new standard is effective for us beginning in the first quarter of 2018. Early adoption is not permitted. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. We have not yet selected a transition method nor have we determined the impact of the new standard on our consolidated condensed financial statements.

In March 2016, the FASB issued an ASU amending the accounting for stock-based compensation and requiring excess tax benefits and deficiencies to be recognized as a component of income tax expense rather than equity. This guidance also requires excess tax benefits to be presented as an operating activity on the statement of cash flows and allows an entity to make an accounting policy election to either estimate expected forfeitures or to account for them as they occur. The ASU is effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of the ASU.

In June 2016, the Financial Accounting Standards Board issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326)” ("ASU 2016-13"). ASU 2016-13 requires that financial assets measured at amortized cost be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. ASU 2016-13 will become effective for the Company for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact of the guidance on its consolidated financial statements.

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INVENTORIES (Tables)

6 Months Ended

Jun. 30, 2016

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

	June 30,		December 31,
	2016		2015
	Unaudited
Raw materials	$	1,974	$	2,284
Work in process		212		24
Finished goods		2,230		2,389
	$	4,416	$	4,697

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NET EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The following table sets forth the computation of basic and diluted net earnings per share from continuing operations:

	Six months ended June 30,				Three months ended June 30,				Year ended December 31,
	2016		2015		2016		2015		2015
	Unaudited
Numerator:
Numerator for basic net earnings per share - Net income from continuing operations	$	2,123	$	2,765	$	1,037	$	1,004	$	3,338
Numerator for diluted net earnings per share - Net income from continuing operations	$	2,123	$	2,765	$	1,037	$	1,004	$	3,338
Denominator:
Denominator for basic net earnings per share - weighted-average number of shares outstanding (in thousands)		7,787		7,695		7,789		7,701		7,725
Denominator for diluted net earnings per share - adjusted weighted average shares and assumed exercises (in thousands)		7,924		7,961		7,934		7,957		7,938
Basic net earnings per share from continuing operations	$	0.27	$	0.36	$	0.13	$	0.13	$	0.42
Diluted net earnings per share from continuing operations	$	0.27	$	0.35	$	0.13	$	0.13	$	0.42

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BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Tables)

6 Months Ended

Jun. 30, 2016

Related Party Transactions [Abstract]

Schedule of Related Party Transactions [Table Text Block]

a. Balances with related parties:

	June 30,		December 31,
	2016		2015
	Unaudited
Other accounts payable and accrued expenses:
DBSI (see note 4e)	$	53	$	53

b. Transactions with related parties:

	Six months ended June 30,				Three months ended June 30,				Year ended December 31,
	2016		2015		2016		2015		2015
	Unaudited
Management fees to DBSI (see Note 4e)	$	90	$	90	$	45	$	45	$	180
Sales to related parties	$	22	$	21	$	11	$	12	$	52
Purchase from related parties	$	24	$	26	$	7	$	26	$	145

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SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

b. The following presents segment results of operations for the six months ended June 30, 2016 (unaudited):

	Cellocator segment		MRM  segment		Elimination		Total
Segments revenues	$	11,193	$	23,685	$	(3,838)	$	31,040
Segments operating profit	$	772	$	2,351	$	104	$	3,227
Segments tangible and intangible assets	$	8,431	$	25,627	$	2,162	$	36,220
Depreciation and amortization	$	166	$	964	$	-	$	1,130
Expenditures for assets	$	51	$	1,078	$	-	$	1,129

c. The following presents segment results of operations for the six months ended June 30, 2015 (unaudited): 

	Cellocator segment		MRM  segment		Elimination		Total
Segments revenues	$	11,009	$	22,484	$	(2,590)	$	30,903
Segments operating profit	$	1,243	$	1,717	$	185	$	3,145
Segments tangible and intangible assets	$	8,758	$	26,926	$	3,179	$	38,863
Depreciation and amortization	$	171	$	1,175	$	-	$	1,346
Expenditures for assets	$	79	$	906	$	-	$	985

d. The following presents segment results of operations for the three months ended June 30, 2016 (unaudited):

	Cellocator segment		MRM  segment		Elimination		Total
Segments revenues	$	5,591	$	12,248	$	(1,625)	$	16,214
Segments operating profit	$	166	$	1,438	$	41	$	1,645
Segments tangible and intangible assets	$	8,431	$	25,627	$	2,162	$	36,220
Depreciation and amortization	$	83	$	530	$	-	$	613
Expenditures for assets	$	31	$	476	$	-	$	507

e. The following presents segment results of operations for the three months ended June 30, 2015 (unaudited):

	Cellocator  segment		MRM  segment		Elimination		Total
Segments revenues	$	5,545	$	11,124	$	(1,178)	$	15,491
Segments operating profit	$	612	$	730	$	69	$	1,411
Segments tangible and intangible assets	$	8,758	$	26,926	$	3,179	$	38,863
Depreciation and amortization	$	85	$	584	$	-	$	669
Expenditures for assets	$	50	$	466	$	-	$	516

f. The following presents segment results of operations for the year ended December 31, 2015:

	Cellocator  segment		MRM  segment		Elimination		Total
Segments revenues	$	19,489	$	47,938	$	(6,860)	$	60,567
Segments operating profit (loss)	$	1,000	$	3,848	$	(205)	$	4,643
Segments tangible and intangible assets	$	8,469	$	24,836	$	1,804	$	35,109
Depreciation, amortization and impairment expenses	$	338	$	3,067	$	-	$	3,405
Expenditures for assets	$	149	$	1,647	$	-	$	1,796

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DISCONTINUED OPERATION (Tables)

6 Months Ended

Jun. 30, 2016

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations [Table Text Block]

a. Below are the main groups of assets and liabilities classified as discontinued operation:

	December 31,
	2015
Assets:
Cash and cash equivalents		2,095
Accounts receivable		8,909
Other accounts receivable and prepaid expenses		444
Inventories		168
Severance pay fund		5,446
Property and equipment		6,117
Goodwill		15,365
Intangible assets		373
Deferred tax asset		57
Assets of discontinued operation	$	38,974
Liabilities:
Short-term bank credit and current maturities of long-term bank loans		84
Trade Payables		7,127
Other accounts payable and accrued expenses		7,931
Long term loans from banks		180
Accrued severance pay		5,783
Liabilities of discontinued operation	$	21,105
Net assets/liabilities of discontinued operation	$	17,869

b. Below is data of the operating results attributed to the discontinued operation:

	Six months ended June 30,				Three months ended June 30,				Year ended December 31,
	2016		2015		2016		2015		2015
	Unaudited				Unaudited
Revenue from sales		18,247		19,385		7,403		9,820		40,498
Cost of sales		15,260		16,893		6,202		8,543		35,427
Gross profit		2,987		2,492		1,201		1,277		5,071
Selling, general and administrative expenses		2,183		1,926		917		1,045		3,649
Operating income		804		566		284		232		1,422
Financial expenses, net		53		399		33		227		805
Other expenses (income), net		348		-		348		-		(15)
Taxes on income		249		110		71		46		97
Income (loss) from discontinued operation		154		57		(168)		(41)		535

c. Below is data of the net cash flows provided by (used in) the discontinued operation:

	Six months ended June 30,				Three months ended June 30,				Year ended December 31,
	2016		2015		2016		2015		2015
	Unaudited				Unaudited
Operating activities		116		1,232		338		662		4,047
Investing activities		(1,187)		134		(690)		51		(746)
Financing activities		251		(6)		221		(122)		(250)

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INVENTORIES (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Inventory [Line Items]
Raw materials	$ 1,974	$ 2,284
Work in process	212	24
Finished goods	2,230	2,389
Total inventory	$ 4,416	$ 4,697

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COMMITMENTS AND CONTINGENT LIABILITIES (Details Textual) - USD ($) $ in Thousands	1 Months Ended		6 Months Ended
	Jul. 31, 2015	Aug. 31, 2014	Jun. 30, 2016	Dec. 31, 2011
COMMITMENTS AND CONTINGENT LIABILITIES [Line Items]
Bank Loans			$ 399
Royalty Percentage			5.00%
Accrued Royalties			$ 2,444
Amount of claim			266
Annual Management Fee			$ 180
Minimum Ratio Of Shareholders Equity To Consolidated Assets			20.00%
Minimum Shareholders Equity			$ 20,000
New Sales Tax Percentage				1.00%
New Sales Tax Liability Recorded				$ 193
Year 2013-2014 [Member]
COMMITMENTS AND CONTINGENT LIABILITIES [Line Items]
Ratio of Indebtedness to Net Capital			4.2
Year 2015 [Member]
COMMITMENTS AND CONTINGENT LIABILITIES [Line Items]
Ratio of Indebtedness to Net Capital			3.5
Year 2016 [Member]
COMMITMENTS AND CONTINGENT LIABILITIES [Line Items]
Ratio of Indebtedness to Net Capital			3
Year 2017 and thereafter [Member]
COMMITMENTS AND CONTINGENT LIABILITIES [Line Items]
Ratio of Indebtedness to Net Capital			2.5
Year 2010 and thereafter [Member]
COMMITMENTS AND CONTINGENT LIABILITIES [Line Items]
Ratio of Indebtedness to Net Capital			4
Pointer Brazil [Member]
COMMITMENTS AND CONTINGENT LIABILITIES [Line Items]
Payments for Legal Settlements		$ 484
Litigation Settlement Interest		2,029
Litigation Settlement, Expense		2,513
Loss Contingency Accrual, Provision		$ 77
Loss Contingency, Settlement Agreement, Terms		14 years
Loss Contingency, Loss in Period	$ 12,100

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NET EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Numerator:
Numerator for basic net earnings per share - Net income from continuing operations	$ 1,037	$ 1,004	$ 2,123	$ 2,765	$ 3,338
Numerator for diluted net earnings per share - Net income from continuing operations	$ 1,037	$ 1,004	$ 2,123	$ 2,765	$ 3,338
Denominator:
Denominator for basic net earnings per share - weighted-average number of shares outstanding (in thousands)	7,789,365	7,701,317	7,787,009	7,695,000	7,725,246
Denominator for diluted net earnings per share - adjusted weighted average shares and assumed exercises (in thousands)	7,934,321	7,957,222	7,924,421	7,961,010	7,938,489
Basic net earnings per share from continuing operations	$ 0.13	$ 0.13	$ 0.27	$ 0.36	$ 0.42
Diluted net earnings per share from continuing operations	$ 0.13	$ 0.13	$ 0.27	$ 0.35	$ 0.42

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INCOME TAXES (Details Textual)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Income Tax Disclosure [Line Items]
Effective Income Tax Rate Reconciliation, Percent	29.00%	20.00%

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BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Accounts Payable and Accrued Liabilities [Abstract]
Other accounts payable and accrued expenses: DBSI (see note 4e(1))	$ 53		$ 53		$ 53
Management fees to DBSI (see Note 4e(1))	45	$ 45	90	$ 90	180
Sales to related parties	11	12	22	21	52
Purchase from related parties	$ 7	$ 26	$ 24	$ 26	$ 145

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BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Details Textual) $ in Thousands	6 Months Ended
	Jun. 30, 2016 USD ($)
Due To Relates Parties Repayment Date	Dec. 31, 2020
Due to Related Parties, Noncurrent	$ 820

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SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Segment Reporting Information [Line Items]
Segments revenues	$ 16,214	$ 15,491	$ 31,040	$ 30,903	$ 60,567
Segments operating profit (loss)	1,645	1,411	3,227	3,145	4,643
Depreciation, amortization and impairment expenses	877	979	1,775	1,985	3,959
Operating Segments [Member]
Segment Reporting Information [Line Items]
Segments revenues	16,214	15,491	31,040	30,903	60,567
Segments operating profit (loss)	1,645	1,411	3,227	3,145	4,643
Segments tangible and intangible assets	36,220	38,863	36,220	38,863	35,109
Depreciation, amortization and impairment expenses	613	669	1,130	1,346	3,405
Expenditures for assets	507	516	1,129	985	1,796
Operating Segments [Member] | Cellocator [Member]
Segment Reporting Information [Line Items]
Segments revenues	5,591	5,545	11,193	11,009	19,489
Segments operating profit (loss)	166	612	772	1,243	1,000
Segments tangible and intangible assets	8,431	8,758	8,431	8,758	8,469
Depreciation, amortization and impairment expenses	83	85	166	171	338
Expenditures for assets	31	50	51	79	149
Operating Segments [Member] | MRM Segment [Member]
Segment Reporting Information [Line Items]
Segments revenues	12,248	11,124	23,685	22,484	47,938
Segments operating profit (loss)	1,438	730	2,351	1,717	3,848
Segments tangible and intangible assets	25,627	26,926	25,627	26,926	24,836
Depreciation, amortization and impairment expenses	530	584	964	1,175	3,067
Expenditures for assets	476	466	1,078	906	1,647
Operating Segments [Member] | Elimination [Member]
Segment Reporting Information [Line Items]
Segments revenues	(1,625)	(1,178)	(3,838)	(2,590)	(6,860)
Segments operating profit (loss)	41	69	104	185	(205)
Segments tangible and intangible assets	2,162	3,179	2,162	3,179	1,804
Depreciation, amortization and impairment expenses	0	0	0	0	0
Expenditures for assets	$ 0	$ 0	$ 0	$ 0	$ 0

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DISCONTINUED OPERATION (Details) $ in Thousands	Dec. 31, 2015 USD ($)
Assets:
Cash and cash equivalents	$ 2,095
Accounts receivable	8,909
Other accounts receivable and prepaid expenses	444
Inventories	168
Severance pay fund	5,446
Property and equipment	6,117
Goodwill	15,365
Intangible assets	373
Deferred tax asset	57
Assets of discontinued operation	38,974
Liabilities:
Short-term bank credit and current maturities of long-term bank loans	84
Trade Payables	7,127
Other accounts payable and accrued expenses	7,931
Long term loans from banks	180
Accrued severance pay	5,783
Liabilities of discontinued operation	21,105
Net assets/liabilities of discontinued operation	$ 17,869

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DISCONTINUED OPERATION (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Revenue from sales	$ 7,403	$ 9,820	$ 18,247	$ 19,385	$ 40,498
Cost of sales	6,202	8,543	15,260	16,893	35,427
Gross profit	1,201	1,277	2,987	2,492	5,071
Selling, general and administrative expenses	917	1,045	2,183	1,926	3,649
Operating income	284	232	804	566	1,422
Financial expenses, net	33	227	53	399	805
Other expenses (income), net	348	0	348	0	(15)
Taxes on income	71	46	249	110	97
Net income (loss) from discontinued operations, net	$ (168)	$ (41)	$ 154	$ 57	$ 535

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DISCONTINUED OPERATION (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Operating activities	$ 338	$ 662	$ 116	$ 1,232	$ 4,047
Investing activities	(690)	51	(1,187)	134	(746)
Financing activities	$ 221	$ (122)	$ 251	$ (6)	$ (250)

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SUBSEQUENT EVENTS (Details Textual)	1 Months Ended
	Aug. 29, 2016 USD ($)	Aug. 29, 2016 BRL
Subsequent Event [Line Items]
Income Tax Examination, Estimate of Possible Loss | $	$ 6.5
Payments to Acquire Businesses, Gross | BRL		BRL 21
Cielo Telecom [Member]
Subsequent Event [Line Items]
Number Of Trucks	16,000	16,000